Microsoft reported for the second quarter of 2026, and although the company’s profits reached record highs due to corporate services, this did not affect Xbox.
The company reported that revenue from sales of Xbox decreased by 10%. Revenue from content and services has fallen by the same magnitude - this is the eighth consecutive quarter in which Xbox is reported to be down. Meanwhile, operating expenses for the gaming division increased by 8% and operating profit fell by 14%.
The head of Microsoft Satya Doodle is optimistic:
When it comes to Xbox, we make the necessary decisions across the platform to reboot the business for long-term growth. We have the best IP in the industry and talented studios around the world, and we believe that we can combine these strengths and return business to growth by 2027."
- Satya Dojla, Microsoft CEO
It is worth bearing in mind that the downsizing decisions recently made by the new head of Asha Sharma have not yet affected Xbox’s financial results - the consequences of its management will show up in the next few quarters.
